Lufthansa Just Paid Over a Billion Euros for Almost Half of TAP

Lufthansa Group and the Portuguese government signed an agreement on November 3 in Lisbon for Lufthansa to buy a 44.9 percent stake in TAP Air Portugal for €1.025 billion. With a ticking fee the total could reach up to €1.2 billion, and Lufthansa says it will fund the purchase from available liquidity.

The stake could rise to 49.9 percent if Lufthansa also buys shares initially offered to TAP employees. Completion depends on regulatory approvals, notably from the European Commission, and no closing date has been given. Lufthansa has said it would welcome a full privatization of TAP in the future.

For travelers, the pitch is network. Lufthansa wants to expand TAP’s routes, especially Portugal–Brazil, Portuguese-speaking Africa and North America, and says Lisbon is set to become its seventh hub. It estimates its Europe–Latin America market share of about 9 percent would rise to roughly 20 percent combined with TAP, and projects synergies of up to €450 million.

Nothing changes for ticket holders yet. Neither the company release nor trade coverage addresses loyalty programs or fares, and TAP’s leadership says the goal is to preserve its Portuguese identity. Miles & More and TAP Miles&Go members should watch for announcements after regulators sign off.

Sources: Lufthansa Group Newsroom, InsideFlyer